In today’s time, keeping a minimum balance in the bank account is a headache for many people. The worry of the average balance every month and the penalty for not following it had troubled the common people. But now Canara Bank has given complete freedom to its customers from this tension.
Under a historic decision effective from June 1, 2025, Canara Bank has abolished the requirement of minimum balance on all types of savings accounts. This move is not only a relief for the customers but is also going to add a new chapter in Indian banking history. With this decision, Canara Bank has become the first major public sector bank in the country to provide its customers the facility of zero balance accounts in the true sense.
End of the hassle of minimum balance
Earlier, Canara Bank customers had to maintain a certain average monthly balance (AMB) in their account. This amount was Rs 2,000 in urban and metro areas, Rs 1,000 in semi-urban areas and Rs 500 in rural areas. If customers failed to maintain this balance, a penalty was charged to them. This penalty especially troubled those who found it difficult to maintain such a balance every month, such as students, small businessmen, elderly and low-income people.
But now this worry is over. Canara Bank has removed the minimum balance condition on all its savings accounts, be it a normal savings account, salary account or NRI account. Now you can keep zero balance in your account and still not have to pay any penalty.
Why is this decision special?
This move of Canara Bank is a milestone towards promoting financial inclusion. The bank said in its statement, “From June 1, 2025, no savings account holder of Canara Bank will have to pay any penalty for not maintaining the minimum balance. This is applicable to all savings accounts.” This decision will prove to be a boon, especially for those who keep a low balance in their account. Students who run their accounts with their pocket money, senior citizens who depend on pensions, and people in rural areas who make small savings will all get relief from this decision.
On social media platform X, the bank wrote, “Experience freedom, make a difference in banking. From June 1, 2025, Canara Bank will not charge any penalty for not maintaining a minimum balance.” This post has created excitement among the customers.
Who will benefit the most?
This new policy is beneficial for every section, but some people will get special benefits from it. First of all, this is a big relief for students, who often keep less amount in their accounts. Salaried professionals who see low balances in their accounts at the end of the month can now use their money without any worry.
Senior citizens who have to depend on pensions or small savings are also happy with this decision. Apart from this, NRIs and small traders who want flexibility in their accounts can now make full use of their accounts without fear of penalty. People living in rural areas, where banking facilities are already limited, will now be able to avail banking services more easily.
Zero Balance Account Facility
Canara Bank already used to offer a zero balance facility through its Basic Savings Deposit Account, but this facility was limited to certain accounts. Now, under this new policy, all types of savings accounts will get a zero balance facility. This means that you can keep as little balance as you want in your account and still you will get all the facilities like ATM, internet banking, mobile banking and debit card. This is especially beneficial for those who want to use their money to the fullest without fearing that the bank will deduct their money.
Comparison with other banks
This decision of Canara Bank is also special because it is the first such move among the major public sector banks of the country. State Bank of India (SBI) had removed the minimum balance condition on its savings accounts in 2020, and now Canara Bank has also taken the same path. However, other private banks like HDFC and ICICI still apply the minimum balance condition to their savings accounts. For example, HDFC Bank requires an average monthly balance of Rs 10,000 for urban branches and Rs 5,000 for semi-urban branches. This move of Canara Bank makes it different from other banks and offers an attractive option for customers.
Opening an account has become easier.
Opening a savings account in Canara Bank was already easy, and now, with the removal of the minimum balance condition, it has become even more attractive. You can open an account by visiting your nearest Canara Bank branch. For this, you will have to provide documents like an Aadhar card, passport, voter ID or driving license. An online account opening facility is also available. You can visit the bank’s website, fill up the form, and upload the required documents, and your account will be opened in a few days. After opening the account, you get a free debit card, passbook and Internet banking facility.
Now, The Final Conclusion:
This decision of Canara Bank has not only brought relief to the customers, but it is a big step towards financial inclusion and customer-centric banking. Now, you can make full use of your account without fear of any penalty. Whether you are a student, salaried professional or senior citizen, this policy will make your banking easier. So, if you are looking for an affordable and flexible banking service, Canara Bank may be the right choice for you. Visit your nearest branch or open an account online today and experience this freedom.
Disclaimer: This article is for general information. Bank policies, features and terms may change from time to time. Before opening an account or availing of any facility, check the latest information from the official website or branch of Canara Bank. The information given in the article is backed by sources such as: Livemint, Canara Bank